SALESFORCE INC (CRM) Fundamental Analysis & Valuation

NYSE:CRM • US79466L3024

Current stock price

181.99 USD
+3.83 (+2.15%)
Last:

This CRM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. CRM Profitability Analysis

1.1 Basic Checks

  • CRM had positive earnings in the past year.
  • CRM had a positive operating cash flow in the past year.
  • In the past 5 years CRM has always been profitable.
  • In the past 5 years CRM always reported a positive cash flow from operatings.
CRM Yearly Net Income VS EBIT VS OCF VS FCFCRM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B

1.2 Ratios

  • CRM's Return On Assets of 6.64% is fine compared to the rest of the industry. CRM outperforms 76.84% of its industry peers.
  • With a decent Return On Equity value of 12.61%, CRM is doing good in the industry, outperforming 77.21% of the companies in the same industry.
  • CRM's Return On Invested Capital of 9.59% is amongst the best of the industry. CRM outperforms 84.19% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for CRM is below the industry average of 10.78%.
  • The last Return On Invested Capital (9.59%) for CRM is above the 3 year average (8.16%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROIC 9.59%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
CRM Yearly ROA, ROE, ROICCRM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 4 6 8 10

1.3 Margins

  • Looking at the Profit Margin, with a value of 17.96%, CRM belongs to the top of the industry, outperforming 83.82% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CRM has remained more or less at the same level.
  • The Operating Margin of CRM (21.47%) is better than 88.97% of its industry peers.
  • CRM's Operating Margin has improved in the last couple of years.
  • CRM has a better Gross Margin (77.68%) than 75.37% of its industry peers.
  • In the last couple of years the Gross Margin of CRM has remained more or less at the same level.
Industry RankSector Rank
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
CRM Yearly Profit, Operating, Gross MarginsCRM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

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4

2. CRM Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRM is destroying value.
  • The number of shares outstanding for CRM has been reduced compared to 1 year ago.
  • CRM has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for CRM is higher compared to a year ago.
CRM Yearly Shares OutstandingCRM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
CRM Yearly Total Debt VS Total AssetsCRM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B 80B 100B

2.2 Solvency

  • An Altman-Z score of 2.67 indicates that CRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • CRM has a Altman-Z score of 2.67. This is in the better half of the industry: CRM outperforms 60.29% of its industry peers.
  • The Debt to FCF ratio of CRM is 1.00, which is an excellent value as it means it would take CRM, only 1.00 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.00, CRM is doing good in the industry, outperforming 73.53% of the companies in the same industry.
  • A Debt/Equity ratio of 0.18 indicates that CRM is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.18, CRM is in line with its industry, outperforming 45.96% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Altman-Z 2.67
ROIC/WACC0.89
WACC10.73%
CRM Yearly LT Debt VS Equity VS FCFCRM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20B 40B 60B

2.3 Liquidity

  • CRM has a Current Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 0.76, CRM is doing worse than 86.40% of the companies in the same industry.
  • CRM has a Quick Ratio of 0.76. This is a bad value and indicates that CRM is not financially healthy enough and could expect problems in meeting its short term obligations.
  • CRM's Quick ratio of 0.76 is on the low side compared to the rest of the industry. CRM is outperformed by 85.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.76
Quick Ratio 0.76
CRM Yearly Current Assets VS Current LiabilitesCRM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. CRM Growth Analysis

3.1 Past

  • CRM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.16%, which is quite impressive.
  • Measured over the past years, CRM shows a very strong growth in Earnings Per Share. The EPS has been growing by 20.60% on average per year.
  • Looking at the last year, CRM shows a quite strong growth in Revenue. The Revenue has grown by 9.58% in the last year.
  • CRM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.34% yearly.
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%

3.2 Future

  • Based on estimates for the next years, CRM will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.91% on average per year.
  • The Revenue is expected to grow by 10.26% on average over the next years. This is quite good.
EPS Next Y6.23%
EPS Next 2Y9.28%
EPS Next 3Y12.68%
EPS Next 5Y9.91%
Revenue Next Year11.19%
Revenue Next 2Y10.33%
Revenue Next 3Y10.29%
Revenue Next 5Y10.26%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
CRM Yearly Revenue VS EstimatesCRM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20B 40B 60B 80B
CRM Yearly EPS VS EstimatesCRM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15 20

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6

4. CRM Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 14.50, which indicates a correct valuation of CRM.
  • Based on the Price/Earnings ratio, CRM is valued cheaper than 81.25% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of CRM to the average of the S&P500 Index (27.42), we can say CRM is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 13.65, which indicates a correct valuation of CRM.
  • Based on the Price/Forward Earnings ratio, CRM is valued a bit cheaper than 77.57% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.29. CRM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 14.5
Fwd PE 13.65
CRM Price Earnings VS Forward Price EarningsCRM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • CRM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRM is cheaper than 81.62% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRM indicates a rather cheap valuation: CRM is cheaper than 86.03% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.66
EV/EBITDA 13.32
CRM Per share dataCRM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CRM does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of CRM may justify a higher PE ratio.
  • A more expensive valuation may be justified as CRM's earnings are expected to grow with 12.68% in the coming years.
PEG (NY)2.33
PEG (5Y)0.7
EPS Next 2Y9.28%
EPS Next 3Y12.68%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. CRM Dividend Analysis

5.1 Amount

  • CRM has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of CRM dropped by -21.88% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • CRM's Dividend Yield is rather good when compared to the industry average which is at 0.68. CRM pays more dividend than 91.91% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, CRM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.02%

5.2 History

  • CRM has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
CRM Yearly Dividends per shareCRM Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • CRM pays out 21.28% of its income as dividend. This is a sustainable payout ratio.
DP21.28%
EPS Next 2Y9.28%
EPS Next 3Y12.68%
CRM Yearly Income VS Free CF VS DividendCRM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5B 10B
CRM Dividend Payout.CRM Dividend Payout, showing the Payout Ratio.CRM Dividend Payout.PayoutRetained Earnings

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CRM Fundamentals: All Metrics, Ratios and Statistics

SALESFORCE INC

NYSE:CRM (4/27/2026, 2:21:09 PM)

181.99

+3.83 (+2.15%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-25
Earnings (Next)05-26
Inst Owners84.96%
Inst Owner Change-0.53%
Ins Owners2.63%
Ins Owner Change0.92%
Market Cap167.98B
Revenue(TTM)41.52B
Net Income(TTM)7.46B
Analysts79.31
Price Target278.22 (52.88%)
Short Float %8.66%
Short Ratio5.44
Dividend
Industry RankSector Rank
Dividend Yield 1.02%
Yearly Dividend1.67
Dividend Growth(5Y)N/A
DP21.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-09
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.24%
Min EPS beat(2)12.59%
Max EPS beat(2)23.9%
EPS beat(4)4
Avg EPS beat(4)10.14%
Min EPS beat(4)0.37%
Max EPS beat(4)23.9%
EPS beat(8)7
Avg EPS beat(8)6.63%
EPS beat(12)11
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)7.77%
Revenue beat(2)0
Avg Revenue beat(2)-0.97%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.82%
Revenue beat(4)0
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-1.12%
Max Revenue beat(4)0%
Revenue beat(8)1
Avg Revenue beat(8)-0.62%
Revenue beat(12)1
Avg Revenue beat(12)-0.53%
Revenue beat(16)2
Avg Revenue beat(16)-0.28%
PT rev (1m)-10.77%
PT rev (3m)-15.63%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)3.73%
EPS NY rev (1m)0.34%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 14.5
Fwd PE 13.65
P/S 4.05
P/FCF 11.66
P/OCF 11.2
P/B 2.84
P/tB N/A
EV/EBITDA 13.32
EPS(TTM)12.55
EY6.9%
EPS(NY)13.33
Fwd EY7.33%
FCF(TTM)15.6
FCFY8.57%
OCF(TTM)16.25
OCFY8.93%
SpS44.99
BVpS64.08
TBVpS-6.08
PEG (NY)2.33
PEG (5Y)0.7
Graham Number134.512 (-26.09%)
Profitability
Industry RankSector Rank
ROA 6.64%
ROE 12.61%
ROCE 11.86%
ROIC 9.59%
ROICexc 10.98%
ROICexgc 832.21%
OM 21.47%
PM (TTM) 17.96%
GM 77.68%
FCFM 34.68%
ROA(3y)5.6%
ROA(5y)3.71%
ROE(3y)9.89%
ROE(5y)6.5%
ROIC(3y)8.16%
ROIC(5y)5.44%
ROICexc(3y)9.79%
ROICexc(5y)6.53%
ROICexgc(3y)348.77%
ROICexgc(5y)217.21%
ROCE(3y)10.09%
ROCE(5y)6.73%
ROICexgc growth 3Y197.62%
ROICexgc growth 5Y168.58%
ROICexc growth 3Y64.12%
ROICexc growth 5Y61.34%
OM growth 3Y53.59%
OM growth 5Y58.58%
PM growth 3Y200.25%
PM growth 5Y-1.29%
GM growth 3Y1.94%
GM growth 5Y0.86%
F-Score7
Asset Turnover0.37
Health
Industry RankSector Rank
Debt/Equity 0.18
Debt/FCF 1
Debt/EBITDA 0.83
Cap/Depr 16.36%
Cap/Sales 1.43%
Interest Coverage 250
Cash Conversion 119.51%
Profit Quality 193.13%
Current Ratio 0.76
Quick Ratio 0.76
Altman-Z 2.67
F-Score7
WACC10.73%
ROIC/WACC0.89
Cap/Depr(3y)17.96%
Cap/Depr(5y)19.34%
Cap/Sales(3y)1.76%
Cap/Sales(5y)2.11%
Profit Quality(3y)207.81%
Profit Quality(5y)804.88%
High Growth Momentum
Growth
EPS 1Y (TTM)23.16%
EPS 3Y33.71%
EPS 5Y20.6%
EPS Q2Q%37.05%
EPS Next Y6.23%
EPS Next 2Y9.28%
EPS Next 3Y12.68%
EPS Next 5Y9.91%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y9.82%
Revenue growth 5Y14.34%
Sales Q2Q%12.09%
Revenue Next Year11.19%
Revenue Next 2Y10.33%
Revenue Next 3Y10.29%
Revenue Next 5Y10.26%
EBIT growth 1Y16.32%
EBIT growth 3Y68.68%
EBIT growth 5Y81.32%
EBIT Next Year37.26%
EBIT Next 3Y18.11%
EBIT Next 5Y15.24%
FCF growth 1Y15.83%
FCF growth 3Y31.64%
FCF growth 5Y28.62%
OCF growth 1Y14.54%
OCF growth 3Y28.24%
OCF growth 5Y25.58%

SALESFORCE INC / CRM Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SALESFORCE INC (CRM) stock?

ChartMill assigns a fundamental rating of 6 / 10 to CRM.


What is the valuation status for CRM stock?

ChartMill assigns a valuation rating of 6 / 10 to SALESFORCE INC (CRM). This can be considered as Fairly Valued.


What is the profitability of CRM stock?

SALESFORCE INC (CRM) has a profitability rating of 8 / 10.


What is the expected EPS growth for SALESFORCE INC (CRM) stock?

The Earnings per Share (EPS) of SALESFORCE INC (CRM) is expected to grow by 6.23% in the next year.


Is the dividend of SALESFORCE INC sustainable?

The dividend rating of SALESFORCE INC (CRM) is 3 / 10 and the dividend payout ratio is 21.28%.